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Supreme Cannabis Company Inc. (The) T.FIRE

The Supreme Cannabis Co Inc is a Canada-based company engaged in the production and sale of medical and recreational cannabis. Its portfolio includes products that address recreational, medical, and wellness consumers. Its brands include BlissCo, Truverra, 7ACRES, Sugarleaf, and Hiway.


TSX:FIRE - Post by User

Comment by theTransporteron Jul 20, 2020 3:37pm
93 Views
Post# 31292128

RE:RE:RE:RE:Company

RE:RE:RE:RE:CompanyMethod's advise on buying debentures is very logical.

More than likely the company will settle their debenture debt with re-negotiating a much lower conversion price to entice debenture holders to convert vs. paying them out in cash upon maturity.  This is a win-win for both debenture holders and the company, but not good for common shareholders who's shares will become more diluted with this approach.

This recently happenned with TGIF where debentures that are maturing in Sept 2021 with a converion price of $0.45, has approved with a majority of debenture holders' support in reducing the conversion price to $0.10.  Debenture holders will end up with over 4x more shares than originally signed up for should they decide to convert.

Company is banking on their stock price going above $0.10 before Sept 2021 and that most of their debenture holders will convert as a result thus wiping out that liability off the balance sheet.

Same thing will happen with Supreme.  I anticipate they will release a couple of strong quarters which will drive the stock price above $1, then propose to debenture holders a reduced conversion price.
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